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Question 16 (5 points) IPO firms Debt ratio statistics are: mean=.2, stdev=.3, Nobs=200. SEO firms Debt ratio statistics are: mean=.5, stdev=.4, Nobs=200. The resulting two-sample

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Question 16 (5 points) IPO firms Debt ratio statistics are: mean=.2, stdev=.3, Nobs=200. SEO firms Debt ratio statistics are: mean=.5, stdev=.4, Nobs=200. The resulting two-sample t-statistics for IPO and SEO groups is t=8.48. Test the null hypothesis that IPO and SEO firms are not different in terms of their average Debt ratio using a two-sample t-test with t-stat=8.48 and 5% significance level. For the t-test you can use the critical value of approximately 2. The null hypothesis that the mean Debt ratio is the same for IPO and SEO is NOT REJECTED. The null hypothesis that the mean Debt ratio is the same for IPO and SEO is REJECTED. SEO firms have on average higher Debt ratio. The null hypothesis that the mean Debt ratio is the same for IPO and SEO is REJECTED. SEO firms have on average lower Debt ratio. None of the above

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